In a dynamic market turn, U.S. rare earth mining stocks have seen a robust uptrend, fueled by rising geopolitical tensions and strategic corporate investments. This surge underscores the growing importance of critical minerals in the global economic and national security landscape.
Critical Metals and Rare Earth Companies Experience Significant Growth Amidst Geopolitical Shifts
On Tuesday, October 14, 2025, U.S. rare earth mining companies witnessed a substantial increase in their stock values during premarket trading, extending gains from the prior session. This market movement occurred against a backdrop of heightened trade friction between the United States and China, alongside a significant initiative from JPMorgan. Critical Metals Corp. (CRML) spearheaded this rally, with its shares climbing 27.4%. This impressive jump followed the announcement on Monday of a 10-year off-take agreement letter of intent between Critical Metals and REalloys Inc., its merger target. Under this agreement, REalloys Inc. plans to procure 15% of the anticipated rare earth concentrate from Critical Metals' Tanbreez Project, located in Southern Greenland, which is recognized as one of the world's most substantial heavy rare earth deposits. Other key players also experienced notable rises: USA Rare Earth Inc. (USAR) saw its shares increase by 12.36%, while MP Materials Corp. (MP) recorded an 8.67% gain. MP Materials Corp. has previously been lauded by prominent investor Chamath Palihapitiya as a successful venture, particularly for its strategic significance and its historical ties to the U.S. Department of Defense's efforts to secure domestic rare earth supplies. Further propelling this sector, JPMorgan Chase & Co. (JPM) declared plans for direct equity investments totaling up to $10 billion. These investments are specifically aimed at addressing national security requirements across various sectors, with a particular focus on critical minerals and emerging technologies. Jamie Dimon, CEO of JPMorgan, emphasized the imperative for the U.S. to reduce its reliance on unreliable international sources for critical minerals, essential products, and manufacturing capabilities. The bank's strategy involves concentrating on four primary areas, with critical minerals being a top priority, offering support to companies through advisory services, financing, and direct capital injections. The surge in these stocks is closely linked to ongoing trade tensions between the world's two largest economies. China, a dominant force in rare earth production—accounting for nearly 70% of global mining output and almost 90% of processing—recently tightened its export controls on rare earths. This move was framed as a measure to protect national security, thereby escalating tensions with the United States. In response, on Friday, former President Donald Trump announced the imposition of new tariffs, a 100% duty on imports from China, effective November 1. However, his subsequent softening of this stance introduced a degree of optimism back into the market. According to CNBC commentator Jim Cramer, China is rapidly adapting to the challenges posed by U.S. tariffs and trade conflicts, potentially making it less dependent on American markets than ever before. Earlier in the week, these stocks had already posted significant gains on Monday, with Critical Metals closing up over 55%, MP Materials rising 21%, and USA Rare Earth climbing 18%.
This surge in rare earth mining stocks highlights the complex interplay between global economics, national security, and raw material supply chains. The drive for domestic sourcing of critical minerals, coupled with geopolitical strategies and substantial financial investments, reshapes market dynamics and signals a potential long-term shift in resource independence and trade relations.